How To Find the Perfect Accountant for Your Small Business

By Chris Weston

Congratulations! Your small business is thriving and you’re thinking about outsourcing some or all of your accounting, finance, or payroll needs. For most small business owners who are not trained accountants, this is one of the first functions to be outsourced as soon as business allows.

And with good reason. Professional accountants are often more organized, more efficient, and can guarantee up-to-date adherence to the ever-changing rules and regulations surrounding accounting and tax laws.

From startup to succession planning, your accountant acts as a trusted business advisor and confidant so you want to make sure you make the right choice.

But how do you choose the right accountant for your business? After you have done your research and created a short list of accountants who you feel can help you maximize your business's financial situation, consider reaching out to each of them with these four important questions.

1. How much do you charge?

Understanding how your accountant charges for services is important. Some accountants charge by the hour, some bundle services and others offer a monthly retainer option. It’s important to get in writing what services are included and which may be invoiced ad hoc.

Basic tasks like data entry, reconciliations, payroll process,ing and bookkeeping will come in at the lowest price point. Tasks such as income tax returns, audited financial statement preparation, budgeting, and tax advising will likely cost extra.

Consider sharing a copy of your previous year tax returns and any other important accounting documents with prospective accountants. This will help them gauge expected work so they can offer a more accurate quote.

2. What degrees, registrations, and accreditations do you have?

In most countries, anyone can call themselves an accountant or bookkeeper even if they have had no training or have no professional qualifications.

First and foremost, if your accountant is going to do your tax return make sure they are accredited. In the United States, look for an accountant accredited by the AICPA (American Institute of Certified Public Accountants); in the UK, they should be accredited by the CCAB. It is simple to search for CIMA members on their site here. These accreditations are evidence that the accountant has passed tough exams and has a good understanding of business accounting and income tax.

Additionally, ask which professional associations they belong to and confirm that they currently meet the standards of each association. Members of most professional accounting institutes not only have to have professional indemnity insurance to cover them -- and you, if anything goes wrong -- but they also have to abide by the code of professional ethics set by the institute.

3. Can I have a few references?

It’s always important to ask for professional references. These will tell you if there have ever been any issues, complaints, or disciplinary actions taken against the accountant. Also be sure to get references from other small business clients. Ask if the accountant ever addressed specific situations that would apply to your business, or showcased an understanding of relevant business laws.

Keep in mind that accountants maintain client confidentiality so you will not be able to contact any client you choose. Expect to be put in touch with clients who have offered to make recommendations or appear on the accountant’s website.

4. What technology do you use?

Computers and data storage in the cloud have completely replaced spreadsheets and other accounting paperwork in recent years. The cloud and mobile devices (phones, tablets, etc.) will continue to help further integrate technology into all aspects of an accountant’s daily duties. This connectivity helps accountants work more efficiently and exchange information with clients more effectively.

Paperless accounting saves time and money, so you want to be sure your accountant works and manages all data in the cloud. It shouldn’t be too difficult to get a feel for how computer literate your potential accountant is by asking what technologies he uses every day.

Selecting an accountant is an important decision for the success of your business, and these four questions should help you in your search to find the very best accountant for your business.